The price of Bitcoin has dropped 3.61% in the last 24 hours, reaching significant support levels in the range of $98,830 to $95,830.
Institutional trading has surged as more Bitcoin is withdrawn from exchanges, reaching 74,052 BTC this December.
Bitcoin [BTC] has recently seen a decline in value and profits from wallets, with this cryptocurrency trading at $95,397 at the time of writing. This marks a 24-hour price drop of 3.61% and a weekly decrease of 1.95%.
Although it reached an all-time high earlier this month, Bitcoin's 30-day Market Value to Realized Value (MVRV) is only at -1.9%. This is the lowest level since the price surge began in October.
According to data from Santiment, this negative MVRV index indicates that many traders bought during a high-optimism phase and are currently experiencing unrealized losses.
Source: Santiment
Santiment has indicated that Bitcoin's historical average MVRV is 0%, reflecting the nature of a zero-sum market. A negative MVRV may suggest buying opportunities, as positions at a loss could indicate an undervaluation of the asset.
This platform suggests a dollar-cost averaging investment method for traders looking to take advantage of this condition.
Key support levels and future price predictions
Cryptocurrency expert Ali emphasizes the importance of the Bitcoin support zone around $98,830 to $95,830. Within this range, 1.09 million wallets have purchased a total of over 1.16 million BTC, making it a significant level to monitor.
Breaking below the $96,000 level could lead to a decline to $90,000 or $85,000, based on Fibonacci retracement levels.
Source: X
Ali also points out the trend of withdrawing Bitcoin from exchanges, with 74,052 BTC moved off exchanges in December.
This model indicates a shift towards long-term investment, as coins removed from exchanges are less likely to be sold.
Market indicators and trading activity
Recent data from IntoTheBlock shows increased activity in high-value transactions of $100,000 and above. On December 18, there were 26,510 large transactions recorded, just below the 7-day high of 29,140.
An increase in such transactions has been observed during periods of volatility, particularly in October and the first part of October. This sustainable trading volume reflects ongoing interest from institutional traders or high net worth individuals.
Source: IntoTheBlock
Address activity also shows a mixed trend. There are currently 1.66 million addresses, including 370,840 new addresses and 894,920 active addresses.
However, last week saw a decrease in new addresses by 7.12% and active addresses by 4.48%, indicating a potential slowdown in retail participation during the recent market correction.
Source: IntoTheBlock
Technical indicators suggest a short-term correction
The technical analysis of Bitcoin shows that this currency is trading above the 9-day and 21-day moving averages. This indicates an overall bullish trend since October.
However, the recent MACD crossover indicates that the MACD line has fallen below the signal line. The chart turning red signals a weakening of bullish momentum.
Source: TradingView
The current resistance level at $99,644 has caused a slight correction, suggesting the possibility of consolidation or further adjustments.
Analysts recommend monitoring the support level at $95,000 to assess whether the bullish trend will continue or face further declines.
